P Xenos and M Bacina
Ledger Vault obtains groundbreaking custom crime insurance policy
Ledger, makers of the Ledger Nano and other cold storage devices has announced that is has secured a crime insurance policy covering digital assets secured by the Ledger Vault platform.
The Ledger Vault is a multi-authorization cryptocurrency wallet management platform, which claims to enable financial institutions to build digital asset operations at increased scale.
Ledger worked with well known broker Marsh and a lead underwriter of crypto-asset insurance, Arch Insurance (UK) Limited. The Ledger Vault platform insurance can apparently insure crypto assets for up to USD 150 million (subject to the pesky legal fine print of couse) including against:
Third-party theft of the master seed and private keys following a physical breach of a hardware security module in a secure data center;
Secure transmissions of the master seed fragments as part of the client onboarding; and
Insider Ledger employee theft caused by collusion.
The coins and tokens currently supported by the Vault platform are coverable by the insurance policy and further tokens are under consideration to be added.
This may be an interesting opportunity for customers to avoid the burden of independently undergoing an insurance security evaluation process. The author has been involved in system design for this process and it will be a significant saving to skip this, if a customer is comfortable trusting Ledger.
Pascal Gauthier, CEO at Ledger said:
We consider insurance a crucial part of a comprehensive plan as digital assets gain a foothold in institutional portfolios. As a new class of assets, securing digital currencies has become a complex challenge for both institutions and insurers.
Only a year ago, insurance for digital assets was unheard of, and with Lloyd's syndicates and other insurers entering the market, it can only assist in the adoption of new crypto-asset based products and greater trust in blockchain systems and security.